I coded a spreadsheet tool to check for fundamentals - you just have to input the ticker.
For Reckitt Benckiser, things don’t look that great, on reflection:
As a benchmark, I use the S&P 500 tracker VOO. It’s nice it overperfomed the benchmark for the last 12 months, but it’s not great it’s behind the benchmark when looking at 5 years. But it depends on what you expect
My tool also showed negative EPS for 2019, and the LSE page confirms the data-
*USD1.4bn settlement with US DoJ related to the Indivior fraud
*GBP890m costs of winding down various operations
*USD5bn impairment charge related to its acquisition of Mead Johnson Nutrition (formula business ?)
The question will be how well the business can adapt and leverage the hallowed new normal, whatever this looks like in the coming 6 to 18 months. It’s got a lot of relevant strengths to play to in terms of product and the relationship it holds with consumers - could possibly see it pivot towards ‘consumer friendly’ PPE - which, depending on WHO and government policies on the wearing of face gear could serve the business very well.
I see what you mean! I’m (counter-intuitively) benchmarking it against the S&P 500 because that is the top “mainstream” index had the highest growth. I’m looking for companies, both in the UK and US that can beat that index. I thought maybe RB had potential in this changed world, but I’m not sure.
The trouble with the FTSE 100 is (and benchmarking growth against it), it’s not really a “growth” index.
Between 2000-2019, UK share prices had lost on average 0.9% a year after inflation (Credit Suisse Global Returns Yearbook, Dimson, Marsh and Staunton).
The positive real total return of 2.7% a year relied on dividends being received and reinvested.
Dividends going away due to Covid-19 means the FTSE 100 is not in great shape.
The FTSE 100 has historically been heavily weighted towards oil, miners and financials. It still is to a large extent which isn’t a great place to find growth but has been a useful source of dividends. Assuming a recovery in oil and commodity prices, this is likely to continue, financials should return to form once we get through the recession so the weightings are unlikely to change dramatically. Screen shots below of the top end of the Vanguard FTSE 100 ETF
The S&P has been more weighted towards tech recently, hence the growth. Screen shot from the top end of the Vanguard S&P 500 ETF